MosChip, a leading Semiconductor & Embedded design services & Solutions company, today announced that it has signed "Share Purchase Agreement" to acquire SoftnauticsInc, a California based company with a focus on Product Engineering Solutionsin Embedded, FPGA and VLSI. Softnautics has offices in California and India (Pune and Ahmadabad).
The acquisition of Softnautics brings highly complementary set of engineering skills, customers, markets & world-class talent along with leadership. Softnautics has established strong customer relationships with top-tier companies across North America and will add 185+ employees to current MosChip talent pool across various domains.
This acquisition will also expand our geographical presence with office in Hyderabad, Bangalore, Pune, and Ahmadabad besides further augmenting presence in North America, which will result in broader access to talent pool.
The acquisition which will be completed during next quarter is expected to be EBIDTA accretive and generate free cash flow starting from very first year. The total cost of acquisition is USD 17.25 million to be paid 52.6% in Swap Shares and 47.4% in cash over a period.
Commenting on the acquisition, Venkata Sudhakar Simhadri , MD and CEO, MosChip, said that this transaction will strengthen MosChip's Embedded System Design capabilities which will enable us to serve our existing clients better, while increasing our ability to acquire new customers. "I do believe that Softnautics and MosChip's partnership is a great value for our existing and potential customers," said Rajesh Shah, CEO, Softnautics Inc. "The joint journey starts now, and we are excited to work together to make MosChip a stronger company. MosChip with more than 1100+ engineers, enables new offerings to our customers, as well as new opportunities for our employees. Jointly, we can provide customers a much more comprehensive set of services while leveraging MosChip's excellent track record in Semiconductor product design", said Rajesh.
The acquisition will come into immediate effect, subject to all necessary approvals.
Shares of Moschip Technologies Ltd was last trading in BSE at Rs. 64.10 as compared to the previous close of Rs. 65.61. The total number of shares traded during the day was 198837 in over 985 trades.
The stock hit an intraday high of Rs. 67.25 and intraday low of 63.00. The net turnover during the day was Rs. 12965203.00.